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Lectra has developed a new, finely-tuned supply chain program for brands, retailers and suppliers. It will enable them to control the chain of digital information, reducing time and costs to develop collections. The program guarantees data integrity across digital exchanges to cut development time, boost productivity, improve product quality and fit, reduce time to market, and heighten consumer satisfaction. It ensures a robust and connected supply chain, essential for fashion players to operate efficiently in today’s high-speed fashion market, with new consumer demands and their need to feed online and in-store channels rapidly and regularly.
Contractors and their suppliers do not always use the same versions of software applications, or may use entirely different solutions. As a result, valuable information created up front is frequently compromised—and even only partially transferred—often generating costly errors and confusion in product development and production, resulting in lost time, efficiency and productivity for both parties.
In addition to providing in-depth analyses of current co-development processes, the program offers a customized action plan to reduce the cost of product development, share fashion industry best practices, eliminate non value-added activities and ultimately improve product quality and lead times.
Lectra is the world leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials.
Dhaka will host the Bangladesh denim expo on March 1 and 2, 2017. The show offers international fashion buyers a one-stop sourcing platform for all aspects of jeans wear. Exclusive to authorized trade visitors, the expo acts as a hub for players on the international denim scene to mingle with colleagues, make new contacts and broker deals.
It will enable buyers and manufacturers to interact and establish future relationships. The show will bring together a selection of highly respected denim mills. The theme is ‘Denim Mashup’. This is a youth-centric denim theme, especially for young women, which brings the fun-feel of the ’90s complete with allover embellishment, shredding and chain details, embroideries, exaggerated proportions, quilted surfaces, fabric mixes etc.
Brands like Gucci to fast fashion retailers like Zara and H&M, all are taking up this as the next cool denim trend in 2017. The show will recreate this theme using products from some of the key global denim suppliers and bringing them together under this theme. In addition there will be seminars, live presentations, panel discussions and workshops on global denim innovations and trends.
Bangladesh is the fastest growing denim destination globally for sourcing fabrics and has been growing exponentially and quickly rising up the value chain.
"Terry towels coming from the Indian factories accounted for almost 21 per cent of the world market. With another 19 per cent share in the bed linen market, India stands as a quality supplier to the US. Indian products are more focused towards innovation and quality. Visible efforts in quality improvement, innovations through R&D programs, and other value-added features bring a whole new dimension to the Indian products. In turn this resulted in higher profit as compared to other regional producers."
Terry towels coming from the Indian factories accounted for almost 21 per cent of the world market. With another 19 per cent share in the bed linen market, India stands as a quality supplier to the US. Indian products are more focused towards innovation and quality. Visible efforts in quality improvement, innovations through R&D programs, and other value-added features bring a whole new dimension to the Indian products. In turn this resulted in higher profit as compared to other regional producers.
Customised and high-value added products are generally not affected by change in market parameters. As such, there were no exceptional price fluctuations on Indian markets during quota removal period. But such was not the case with other regional competitors’ products, such as China, where prices were cut down significantly favoring buyers.
How does the treaty effect fare?
With the removal of quotas and similar trade barriers, the market is expected to provide new opportunities with evaluations reaching $1.4bn for towels and $1.8 in bed linen. China’s impressive production capacity and its growing strength compelled Europe and US markets to some serious reflections. To bring a halt to massive invasion of their products, EU and US have imposed trade restrictions, which also encourage retailers to review their sourcing strategy through diversification out of China. Now, undoubtedly India has good cards to play. With traders realising the threat of relying on a single manufacturing source such as China, India could do well in proposing a valuable alternative to buyers on the international scene, but this is only possible through an adequate and appropriate development strategy and macro-economic policy.
In that view, many manufacturing companies in India are rushing towards expansion and modernization options. Manufacturers are having recourse to fund raising programs pushing EPS to higher growth, dissolving equity on its way. Business collaborations with foreign players, creation of buying offices and Government’s effort to enhance quality production and export are many visible signs of Indians coming into force on the global market.
Capacity expansion the way ahead
The new opportunities have carried along Indian home-textiles manufacturers in the expansion strategy direction. The Textile Upgradation Fund has helped many such operators to increase capacity during the last three fiscal years. Such expansion strategies have not only had an impact on production volume, also assisted companies in better providing customized products.
The home textile sector is in a good position to activate and encourage developments in the overall domestic textile industry. With more emphasis on product having longer cycles than those average apparels, home textiles manufacturing is more protected than its apparel counterparts. Those wishing to reap the benefits of opportunities have to show good preparatory dispositions as well as willingness to stay on the forefront of the global competition game – without these; we could see regional competition grabbing most of the market share.
Pure London, the UK’s leading fashion trade event, announced the launch of a new sourcing event, Pure Origin. Targeted at uniting international suppliers, buyers and brands in London’s busiest fashion trade hub, Pure Origin will bring together all aspects of fashion sourcing and manufacturing under one umbrella.
Held in the heart of London alongside Pure London and Pure Man, Pure Origin is the gateway for global manufacturers to break into the UK market, meet thousands of visitors from the fashion retail ecosystem and share a part of a market whose growth rate is racing across Europe.
Pure Origin will offer a unique opportunity for connected and efficient business by facilitating easy access to International suppliers and fuel networking and trade.
More than 40 manufacturers worldwide, including Blueberry Impex and Timeswell Textile from Hong Kong and Ribeiro & Matos from Portugal have already confirmed participation. While an surge in British manufacturing is reflected in a strong UK contingency at the show with Oxford Blue, LS Manufacturing Ltd., Gil Design Studio, Kalopsia Collective and BeFab Be Creative UK signed up. Julie Driscoll, Managing Director at Pure London exults, “Offering efficiency and time-saving benefits, Pure Origin will showcase a curated selection of international manufacturers, textile producers and white labels – it was the obvious extension to the globally recognised Pure London brand. The UK is renowned for its world-class retailing, booming e-commerce sector, innovative independents and resilience and following extensive research into the marketplace Pure Origin was created to deliver all aspects of fashion sourcing and manufacturing under one spectacular roof at the London Olympia.”
Pure London now welcomes more than 800 brands from 48 countries and over 10,000 UK and International visitors. International growth has been driven through penetrating 13 new geographical markets including Peru and Malaysia.
To find out more information on the AW 18/19 event, visit www.purelondon.com. The next edition will take place from 11th-13th February at London Olympia, welcoming over 800 brands across womens’ wear, menswear, young fashion, athleisure, footwear and accessories.
Australia has the capacity to produce carbon fibers at a scaled-up level. The wet spinning line will enable the country to carry out carbon fiber research starting from molecules to fully finished components. The carbon fiber research capability could disrupt the carbon fiber industry. The carbon fiber facility will help Australia develop the next generation high performance carbon fibers.
The wet spinning capability develops strands of thin fibers, which are thinner than human hair, which are then carbonized. An Italian company built the wet spinning line. The raw material used to make carbon fiber is called the precursor. About 90 per cent of the carbon fibers produced are made from polyacrylonitrile. The remaining 10 per cent is made from rayon or petroleum pitch.
The process for making carbon fibers is part chemical and part mechanical. The precursor is drawn into long strands or fibers and then heated to a very high temperature without allowing it to come in contact with oxygen. Without oxygen, the fiber cannot burn. Instead, the high temperature causes the atoms in the fiber to vibrate violently until most of the non-carbon atoms are expelled. This process is called carbonization and leaves a fiber composed of long, tightly inter-locked chains of carbon atoms with only a few non-carbon atoms remaining.
XCEL is a professionally managed company headed by highly qualified and experienced people which has been involved in the industry since 1994 to offer excellent solutions for setting up hospitals, hotels, garment factories and commercial laundries.
The company has an in house processing facility and continuous R&D. It ensures an uniform quality and delivery commitments for a broad range of premium and economy machines produced at a progressive assembly line in technological association with major global companies.
For ironing there are all types of ironing and blowing tables for garments, up-steam tables for knits and woolens, inline pressing tables for sampling and inline pressing with built in boiler. For laundry is a complete range of front load washing machines, top or side load washing machines, drying tumblers and hydro extractors. Washing machines and drying tumblers are available in all versions of heating.
The company has had a tie-up with industry leader IIGM, with which it can sell these machines on a pan India basis. The company hopes this will add to its market share.
Post process printing machine suppliers are not organised as they lack the range. So XCEL has decided to launch the complete range of nine machines within the next six months though three machines will be launched in the coming GTE, March 2017, New Delhi. Also to be launched will be a range of digital printing post process equipments.
Unrest has hit Bangladesh’s readymade garment industry. At least 26 trade unionists and garment workers in Bangladesh have been jailed for participating in a strike since December last year following demands to increase the minimum wage.
In addition, more than 1,600 workers have been fired and police have filed cases against 600 workers and trade union leaders, including charges of terrorism. There is growing international concern around Bangladesh’s clampdown on trade unions in the country’s garment sector. Bangladesh’s garment workers remain the lowest paid in the world and have not received a pay rise in over three years, despite soaring inflation in the cost of basic goods.
The Bangladesh garment and textiles industry is progressing towards its goal of increased value of exports but this can only be based on profitable businesses that support decent employment for workers whose rights are respected.
Opening a dialogue on strategies to secure a more sustainable apparel supply chain from local and global perspectives may help. Employers say minimum wages in the apparel industry in the country have risen 219 per cent over the last six years and that they have created a Workers’ Welfare Fund, which will invest 10 million dollars this year on workers’ insurance, education, healthcare and other welfare activities.
VF Corporation’s jeanswear business decreased five per cent in the fourth quarter. Earnings per share on a reported basis were down 33 per cent compared to the same period last year. Adjusted earnings per share for the fourth quarter increased three per cent. VF Corporation is an international apparel and footwear company and has brands like Wrangler, Lee.
Wrangler brand revenues dipped one per cent in the fourth quarter. The brand’s revenue saw a high single-digit rate decrease in Europe and a 20 per cent decline in the Asia Pacific region. Full year revenue for Wrangler was down one per cent. Lee’s revenue saw a larger decline. The brand’s fourth quarter revenue decreased 13 per cent. Full year revenue for Lee declined three per cent.
For the full year, VF’s global jeanswear revenue was down two per cent. Looking ahead, VF remains cautionary, expecting revenue to increase at a low single-digit percentage rate. Meanwhile the corporation has reduced its global carbon emissions by 12 per cent from 2011 to 2015.
VF achieved these reductions while seeing vast expansions to its business, adding more than 500 sites to its global operations within the five-year period – a 40 per cent increase driven mainly by retail store expansion.
Pakistan’s textile industry is facing new threats of further losing its market share to China. China is heavily investing in textile manufacturing facilities in its province bordering the South Asian nation. The anticipated glut of textiles and garments from the Xinjiang textile park in the export as well as domestic markets of Pakistan poses a serious threat to Pakistan’s textile sector which is already struggling to remain afloat.
China is giving primary importance to Xinjiang province, bordering Pakistan. The province accounts for 60 per cent of China’s seven million tons of cotton production. The underdeveloped province is seeing a rapid industrialisation under China’s plan of developing it into a major textile exporting hub. Billions are being poured into garment factory constructions. By 2020, Xinjiang is expected to produce about 500 million garments a year.
China is also building a 3000-km road from Gwadar in Pakistan to Kashgar in China. Pakistani markets are already awash with low cost Chinese products. Pakistan fears a similar influx of goods under China’s transit trade. Textile exports contribute around 60 per cent to Pakistan’s total exports, which are already on the declining trend owing to a host of factors, including high production costs and lack of incentives.
"India has an opportunity to promote apparel, leather and footwear sectors because of rising wage levels in China that has resulted in China stabilising or losing market share. India is well positioned to take advantage of China’s falling competitiveness because wage costs in India are significantly lower than in China. Sadly, this is not happening yet. The space vacated by China is fast being taken over by Bangladesh and Vietnam in apparels; Vietnam and Indonesia in leather and footwear."
India has an opportunity to promote apparel, leather and footwear sectors because of rising wage levels in China that has resulted in China stabilising or losing market share. India is well positioned to take advantage of China’s falling competitiveness because wage costs in India are significantly lower than in China. Sadly, this is not happening yet. The space vacated by China is fast being taken over by Bangladesh and Vietnam in apparels; Vietnam and Indonesia in leather and footwear. Indian apparel and leather firms are relocating to Bangladesh, Vietnam, Myanmar, and even Ethiopia. The window of opportunity is narrowing and India needs to act fast if it is to regain competitiveness and market share in these sectors.
Why clothes and shoes?
Apparels and leather sectors offer tremendous opportunities for job creation, especially for women. Data show apparels are 80-fold more labour-intensive than autos and 240-fold more jobs than steel. The comparable numbers for leather goods are 33 and 100, respectively. Drawing on World Bank employment elasticities, it can be estimated that rapid export growth could generate about half a million additional direct jobs every year.
The opportunity created for women implies that these sectors could be vehicles for social transformation. Women in apparel factories emphasize the agency they had gained on financial decisions. The agency also extended to husbands starting to helping with household chores. In Bangladesh, female education, total fertility rates, and women’s labour force participation moved positively due to the expansion of the apparel sector.
Challenges abound
India still has comparative advantage in terms of cheaper and more abundant labour. But these are nullified by other factors that render them less competitive. The apparel and leather sectors face a set of common challenges: logistics, labour regulations, and tax & tariff policy, and disadvantages emanating from the international trading environment compared to competitor countries. On the logistics front, India is handicapped relative to competitors in a number of ways. The costs and time involved in getting goods from factory to destination are greater than those for other countries. Further, few very large capacity containers (VLCC) come to Indian ports to take cargo so that exports have to be trans-shipped through Colombo, which adds to travel costs and hence reduces the flexibility for manufacturers.
Labour regulations
Labour costs, India’s source of comparative advantage in this sector, is also not working in its favour. The problems are well-known: regulations on minimum overtime pay, onerous mandatory contributions that become de facto taxes for low-paid workers in small firms that results in a 45 per cent lower disposable salary, lack of flexibility in part-time work and high minimum wages in some cases. There are strict regulations for overtime wage payment as the Minimum Wages Act 1948 mandates payment of overtime wages at twice the rate of ordinary rates of wages of the worker.
One symptom of labour market problems is that Indian apparel and leather firms are smaller compared to firms in China, Bangladesh and Vietnam. An estimated 78 per cent of firms in India employ less than 50 workers with 10 per cent employing more than 500. In China, the comparable numbers are about 15 per cent and 28 per cent respectively.
Tax and tariff policies
On one hand, high tariffs on yarn and fibre increase the cost of production. India imposes a 10 percent tariff on man-made fibers vis-à-vis 6 per cent on cotton fibres. To an extent, this need not affect export competitiveness because drawback for tariffs paid on inputs is available. But drawbacks are not provided for purchases of domestically produced yarn that will reflect the high tariffs, adding to clothing costs. And in any case, domestic sales of clothing will not benefit from duty drawback which could also affect overall export competitiveness.
On the other hand, domestic taxes also favour cotton-based production rather than production based on man-made fibers with 7.5 per cent tax on the former and 8.4 per cent on the latter. To this end, there is a need to undertake rationalisation of domestic policies, which are inconsistent with global demand patterns.
An FTA with EU and UK will help. In the case of apparels, it will offset existing disadvantage for India compared to Bangladesh, Vietnam and Ethiopia, which already enjoy better market access. For leather, the FTA might give India an advantage relative to competitors. In both cases, the incremental impact would be positive.
Policy initiatives
Several measures form part of the package approved by the government for textiles and apparels in June 2016. Their rationale is to address the challenges described above. Even though these policies do not address all challenges but will go a long way in strengthening the apparel industry. Apparel exporters will be provided relief to offset the impact of state taxes embedded in exports, which could be as high as about 5 per cent of exports. Similar provisions for leather exporters would be useful. This is not a subsidy but really a drawback scheme that should be WTO-consistent because it offsets taxes on exports.
